Chasing Nike (NYSE:NKE) in the footwear business has to be a frustrating exercise for the likes of Adidas (Nasdaq:ADDYY), Skechers (NYSE:SKX), and Puma.
In good times and bad, Nike's unmatched commitment to marketing and
product development translates into strong share, revenue, and profits.
Should Nike ever make a similar commitment to leading the apparel
market, who knows how much larger the company could get? In any case,
Nike doesn't look cheap today, but then it so seldom does.
A Solid End To The Year
Nike brought the fiscal year to a good end with fourth quarter results.
Revenue rose more than 7% as reported, or about 9% on a constant
currency basis. Growth was led by the tiny equipment business (up over
10%), while footwear sales rose almost 7% and apparel was up 6%. While
the North American market has remained a hot one for Nike (up 12%),
China has turned positive again.
Please read more on Nike here:
http://www.investopedia.com/stock-analysis/062813/nike-stretches-its-lead-nke-addyy-ua-lulu.aspx
Showing posts with label Under Armour. Show all posts
Showing posts with label Under Armour. Show all posts
Friday, June 28, 2013
Tuesday, June 11, 2013
Investopedia: As One Problem Fades At lululemon athletica, Another One Emerges
Even the most patient investor in lululemon athletica (Nasdaq:LULU)
has to be dreading earnings release dates from this fast-growing
athletic apparel company. Not only does this stock experience the normal
volatility that goes with high-growth/high-expectation names (“You
missed comps by a half-point? Off with your head!”), but the
announcement of a major product defect (see-through pants) and now the
CEO resignation have added even more turmoil.
Through all of this, lululemon has remained an impressive growth story, but maybe the cracks are starting to appear and competitors are starting to up their games as well. While I'm solidly on board with the idea of picking up growth stocks on pullbacks that don't seem related to material events, the loss of a quality CEO seems pretty material to me. Consequently, I'd be careful about piling into lululemon with the idea that a quick rebound is guaranteed.
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Through all of this, lululemon has remained an impressive growth story, but maybe the cracks are starting to appear and competitors are starting to up their games as well. While I'm solidly on board with the idea of picking up growth stocks on pullbacks that don't seem related to material events, the loss of a quality CEO seems pretty material to me. Consequently, I'd be careful about piling into lululemon with the idea that a quick rebound is guaranteed.
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Saturday, March 23, 2013
Investopedia: Nike Continues To Just Do It
For Nike (NYSE:NKE)
to perform as it has despite economic challenges in Europe, China, and
the U.S. is a pretty strong testament both to the power of the brand,
but also the company's commitment to product development. With a strong
pipeline, signs of improvement in China, and the potential to recapture
some lost gross margin,
Nike could retest its 52-week high in the not-so-distant future. Nike
isn't a terribly cheap or underrated stock, but strong financial
performance could still translate into decent (or better) stock
performance.
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Investopedia: Have See-Through Pants Created An Opportunity In lululemon Shares?
For a stock with a take-no-prisoners valuation, the reaction to Lululemon Athletica's (Nasdaq:LULU)
sizable product recall has been quite restrained. Even with a defective
batch of the company's top product taking steam out of the first
quarter's comp growth, this company is still growing and seeing good
success in broadening its product offerings. While there is a limit to
how many missteps customers will tolerate from a company selling
premium-priced products, Lululemon has
been relatively proactive and upfront in dealing with the issue.
Although I still believe the growth expectations here are still pretty
aggressive, investors who believe otherwise could see this as an
opportunity to pick up shares.
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Friday, December 28, 2012
Investopedia: China's Sluggish, But Nike's Growing Well Everywhere Else
Nike (NYSE:NKE)
gave investors a rare chance to pick up shares at a more reasonable
price twice this year, but it looks like it's back to business as usual
for the world's biggest footwear company. Although business in China
remains sluggish, Nike's overall growth and margin profile continue to
look quite strong.
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Friday, December 7, 2012
Investopedia: lululemon Continues To Deliver High-Priced Performance
"Pay for performance" has long been a mantra on Wall Street, and it's a little harder to condemn athletic apparel maker lululemon athletica (Nasdaq:LULU)
for its valuation when it continues to perform as well as it does. Not
only does the company continue to move truly impressive quantities of
premium-priced merchandise, but the company's cautious inventory and
expansion philosophies mitigate some of the normal retailing risks. All
of that said, investors aren't getting any bargains in these shares.
Read more here:
http://www.investopedia.com/
Read more here:
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Monday, October 1, 2012
Investopedia: China Still A Pebble In Nike's Shoe
The investment community seems to have locked on to Nike's (NYSE:NKE)
"China problem," and this quarter's results aren't going to help. The
good news is that investors can still take advantage of this situation
to build a position in a stock that very rarely ever gets down to a fair
price, let alone cheap. The bad news, however, is that results could
slow in the interim and Wall Street is very much a "what have you done
for me lately?" sort of business.
To read more, please follow this link:
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To read more, please follow this link:
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Monday, September 10, 2012
Investopedia: Bonkers Expectations May Still Be lululemon athletica's Biggest Challenge
It looks like the momentum trade is back "on" for lululemon athletica (Nasdaq:LULU)
as investors cheered a solid second quarter and encouraging third
quarter guidance. With lululemon's comps remaining in the double-digits
and demand continuing to outstrip supply, the biggest challenge for this
company may simply be living up to expectations. Although this remains
one of the strongest-growing and most productive stories in retailing,
valuation and expectations look more than a little breathless.
Please click the link for more:
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Wednesday, July 4, 2012
Investopedia: Do Nike's Earnings Have Broader Meaning On China?
Nike (NYSE:NKE)
is often as near as what comes to a bulletproof stock - the company's
brand is known all over the world, management runs the company with high
efficiency and results are generally reasonably predictable.
Occasionally, a little gap in the armor appears and patient investors
have an opportunity to buy shares at a reasonable price. Nowadays it
looks like Nike's "China problem" may be just such a gap.
Click here for more:
http://stocks.investopedia.
Click here for more:
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Monday, March 26, 2012
Investopedia: Nike Running Away From Everything
When companies with great brands go on runs, all you can really do is hang on for the ride (if you own shares) or wait in the hopes of a stumble somewhere down the line (if you don't). By no means is Nike (NYSE:NKE) cheap right now, but it's hard to fault a huge global leader that is growing by double-digits and could yet double revenue over the next decade (if not sooner).
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Tuesday, September 27, 2011
Investopedia: Nike Asks, "What Slowdown?"
Few companies get as much credit for its brand value as Nike (NYSE:NKE), but brand value alone does not seem to explain why the company continues to do so well in an environment where consumers are looking left and right for bargains. The fact is, while Nike may not offer the cheapest options in its categories, the price gap is not as large as it used to be and the company has done a very good job of delivering value for money. (If you are interested in value investing, read The Value Investor's Handbook.)
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
Friday, September 9, 2011
Investopedia: Lululemon - Does Success Have To Make Sense?
For all those wishing to suggest that the so-called "Great Recession" has permanently changed consumer spending behavior and value assessment, I would present Lululemon Athletica (Nasdaq: LULU). Here is a company that has continued to grow at an impressive clip throughout this downturn and has achieved over $200 million in quarterly revenue on the basis of convincing people to pay $100 for sweatpants (very nice and comfortable sweatpants, I'm told, but still basically just upgraded, bum-sculpting sweatpants). Now the question is how long the company can maintain the momentum in its sales and the anti-gravity in its valuation.
Second Quarter Results Very Limber
Lululemon had another startlingly good quarter from a growth perspective. Revenue rose more than 39%, with same-store comp sales up 20%. What makes that notably impressive to me is that revenue rose 35% year on year in the first quarter (with comp growth of 16%) - so even though consumer confidence and retail spending seems to be getting worse, Lululemon continues to grow apace.
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Second Quarter Results Very Limber
Lululemon had another startlingly good quarter from a growth perspective. Revenue rose more than 39%, with same-store comp sales up 20%. What makes that notably impressive to me is that revenue rose 35% year on year in the first quarter (with comp growth of 16%) - so even though consumer confidence and retail spending seems to be getting worse, Lululemon continues to grow apace.
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Tuesday, June 28, 2011
Investopedia: Nike Still Winning
It seems a little strange that footwear and athletic apparel maker Nike (NYSE:NKE) never quite gets the same respect or admiration that Coca-Cola (NYSE:KO), Microsoft (Nasdaq:MSFT) or Wal-Mart (NYSE:WMT) get from investors and business historians. After all, Nike started at almost the same time as Wal-Mart and is every bit as global (if not more) in its reach and influence.
Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
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Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
To read the full piece, please click below:
http://stocks.investopedia.
Monday, June 13, 2011
Investopedia: Lululemon's Growth Moots The Valuation
Traditional value investors probably didn't like Lululemon Athletica (Nasdaq:LULU) before Friday's earnings report, and they are not likely to appreciate it any more afterward. So, for those who think the secret to successful stockpicking is in targeting single-digit EV/EBITDA ratios, sub-1.0 PEG ratios, or similar formulas, Lululemon just is not going to work for them.
For growth investors, though, this is a name that just keeps delivering the goods. There will be a day of reckoning, a day when the growth disappoints and investors suddenly realize that the low-hanging fruit has been plucked, but that day isn't today and it does not look like it's going to be tomorrow either. In the meantime, aggressive investors may continue to benefit from one of the most dynamic stories in retail.
A Strong Start to the Fiscal Year
Lululemon delivered 35% revenue in the fiscal first quarter, with comp-store sales up 16% in constant dollar terms. Few retailers are approaching this sort of growth these days. That said, it looks like maybe Wall Street has caught up to the name a bit - the company did surpass the average analyst estimate, but not by much and the company definitely did not beat the highest end of the range.
Please continue via the link:
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For growth investors, though, this is a name that just keeps delivering the goods. There will be a day of reckoning, a day when the growth disappoints and investors suddenly realize that the low-hanging fruit has been plucked, but that day isn't today and it does not look like it's going to be tomorrow either. In the meantime, aggressive investors may continue to benefit from one of the most dynamic stories in retail.
A Strong Start to the Fiscal Year
Lululemon delivered 35% revenue in the fiscal first quarter, with comp-store sales up 16% in constant dollar terms. Few retailers are approaching this sort of growth these days. That said, it looks like maybe Wall Street has caught up to the name a bit - the company did surpass the average analyst estimate, but not by much and the company definitely did not beat the highest end of the range.
Please continue via the link:
http://stocks.investopedia.
Thursday, December 9, 2010
Lululemon Masters The Upward-Profits Pose
I am not aware of a "ring the cash register" pose in yoga, but if there is one, I have no doubt that Lululemon Athletica (Nasdaq:LULU) has mastered it. Combining a healthy living and pro-environment shtick with truly well-designed, well-crafted and well-marketed apparel, Lululemon is carving out a very successful niche in women's athletic apparel market and driving value-centered investors to distraction.
A Limber Third Quarter
It is a real challenge to find a metric in which Lululemon did not excel in its fiscal third quarter. Revenue jumped almost 56% to $176 million, leaving the highest published estimate in the dust. Likewise, comp-store sales growth of 29% was outstanding and the company produced an eye-popping amount of productivity (nearly $2,000 in sales per gross square foot of selling space, on an annualized basis). Sure, that's less than what, say, Tiffany (NYSE:TIF) does, but they sell diamonds! Compared to other clothing retailers, even solid performers like Urban Outfitters (Nasdaq:URBN) or Limited's (NYSE:LTD) Victoria's Secret cannot come close to that level of performance.
Please click below for the full article:
http://stocks.investopedia.
A Limber Third Quarter
It is a real challenge to find a metric in which Lululemon did not excel in its fiscal third quarter. Revenue jumped almost 56% to $176 million, leaving the highest published estimate in the dust. Likewise, comp-store sales growth of 29% was outstanding and the company produced an eye-popping amount of productivity (nearly $2,000 in sales per gross square foot of selling space, on an annualized basis). Sure, that's less than what, say, Tiffany (NYSE:TIF) does, but they sell diamonds! Compared to other clothing retailers, even solid performers like Urban Outfitters (Nasdaq:URBN) or Limited's (NYSE:LTD) Victoria's Secret cannot come close to that level of performance.
Please click below for the full article:
http://stocks.investopedia.
Friday, October 1, 2010
Crocs Back From The Dead
There was no shortage of people lining up to cheer the demise of Crocs (Nasdaq:CROX) as the stock plunged from an improbable high near $70 to under $2 in only about one year. This maker of distinctive (some would say ugly) footwear defied gravity and the howls of value-oriented commentators on its way up and there was almost a sense of palpable glee when the bubble burst.
Well, Crocs-haters may want to avert their eyes because Crocs is not dead. In fact, business seems to be pretty healthy, and that has fueled a rebound for the stock back into the teens. In fact, Crocs' stock has pretty much trounced the field for the past year. The past year has been a very strong one for footwear companies, but Crocs has more than doubled the one-year performance of the likes of Nike (NYSE:NKE), Timberland (NYSE:TBL), Skechers (NYSE:SKX) and K-Swiss (Nasdaq:KSWS).
Click below to continue to the full article.
http://stocks.investopedia.com/stock-analysis/2010/Crocs-Back-From-The-Dead-CROX-NKE-TBL-SKX-KSWS-DECK-UA1001.aspx
Well, Crocs-haters may want to avert their eyes because Crocs is not dead. In fact, business seems to be pretty healthy, and that has fueled a rebound for the stock back into the teens. In fact, Crocs' stock has pretty much trounced the field for the past year. The past year has been a very strong one for footwear companies, but Crocs has more than doubled the one-year performance of the likes of Nike (NYSE:NKE), Timberland (NYSE:TBL), Skechers (NYSE:SKX) and K-Swiss (Nasdaq:KSWS).
Click below to continue to the full article.
http://stocks.investopedia.com/stock-analysis/2010/Crocs-Back-From-The-Dead-CROX-NKE-TBL-SKX-KSWS-DECK-UA1001.aspx
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